Colombia | BanRep raises policy rate by 50 bps in October

Summary

Banco de la República increased the policy rate by 50 basis points, bringing it to 2.5%. The vote was split, with 5 members in favor of a 50bp increase and 2 in favor of 25bp. On the other hand, the Staff revised its forecasts for activity, inflation and current account deficit upwards again.

Key points

• Key points:
• Banco de la República increased its policy rate by 50bp, bringing it to 2.5%.
• The Bank's decision is based on higher inflation and expected growth.
• The Issuer's staff raised its forecasts for growth, inflation and current account deficit.
• Nevertheless, we expect a 50bp increase at the next monetary policy meeting in December.

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